Advertising ROI is the return on investment of an advertising campaign. It is important to understand the return on investment of  your advertising campaigns as it is a measure of effectiveness  ; in simple terms how much the advertising helped you generate compared to how much was spent or invested on the advertising efforts.  Making sure that the advertising ROI is high is a priority. Your Advertising ROI can be calculated simply by dividing your sales by the cost of your advertising.

 Sales / Cost of Ads = Advertising ROI

Your Advertising ROI can be calculated simply by dividing your sales by the cost of your advertising.

Leads / Cost of Ads = Advertising ROI

If the purpose of your Advertising campaign is to gather leads or inquiries you can simply divide the amount of leads or inquiries generated by the cost of the advertising campaign.

Getting a High ROI

To get a solid return on investment your advertising campaign should be able to produce more leads that it costs you. Your advertising should be able to convince your market that they should acquire your product or service.  This is why it is important to choose the most profitable forms of advertising instead of the costly ineffective ones. Television and radio are two of the most expensive forms of advertising yet as consumers shift more to the online world for information the ROI that they can generate has been decreasing. On the other hand the ROI of online advertising efforts has been increasing greatly as it is a more affordable yet more profitable when executed the right way.

What is your advertising costing you now? Are you generating more sales and leads? Maybe it’s time to rethink your strategies? Maximize your advertising ROI by employing cost effective online marketing strategies.